Traditionally, by Friday afternoon, commodity trading desks shift their focus from profit-making to risk management, as they can't adjust their positions until markets reopen on Sunday evening. However, with the rise of perpetual futures contracts on crypto exchanges, traders can now hedge their bets 24/7, potentially capturing profits over the weekend. This development may influence the dynamics of short-dated West Texas Intermediate crude options, as traders can now hedge their exposure throughout the weekend. While institutional traders have yet to fully embrace perpetual futures due to liquidity concerns and infrastructure limitations, the growth of crypto-native firms, proprietary trading shops, and retail traders in this space may pave the way for a broader shift towards continuous trading.
As the lines between traditional finance and cryptocurrency continue to blur, the notion that weekends are a time for waiting may become a relic of the past.